The federal carbon tax was introduced in 2019 and has increased ever since. Originally, it was to be returned to the people in the province or territory where it was collected. This article isn’t relevant for British Columbia and Quebec because neither has a federal carbon tax. Individuals receive the Canada Carbon Rebate quarterly. Payments […] Read more
Tag Archives In the Farmyard column
Estate plan tips to recognize farming, non-farming kids
Rural communities all have stories about farmland deals gone bad, land sold through divorces, and non-farming siblings inheriting land and selling it out from under the farming sibling. That’s likely why many parents want to give most, if not all, the farmland to the farming child(ren), so the farm remains in the family. This typical […] Read more
Avoid surprises with tax estimates before end of the year
Do you know how much cash basis taxable income you have right now? Cash basis taxation for farmers is unique and gives a lot of flexibility for taxable income planning. However, this can create massive tax liabilities if you have too much cash basis taxable income. Many producers wait until winter to get their books […] Read more
AgriStability deadline changes to make it more responsive
Historically, the AgriStability filing deadline is Sept. 30. However, for the 2024 program year, the deadline is changing to June 30, 2025, to submit the 2024 forms without penalties. If you don’t participate in AgriStability, the AgriInvest deadline is still Sept. 30, 2025, for the 2024 program year. However, for the 2025 program year, the […] Read more
Timing is vital when using agriculture’s special tax rules
Unlike other industries, farming has special tax rules that allow for the transfer of an individual’s shares of a farming corporation to the next generation on a tax-free rollover basis. For other industries, the value that has accrued on Mom and Dad’s shares are eventually taxed to Mom and Dad, either by way of share […] Read more
Beware of non-farm assets in a farming corporation
With GIC interest rates between five and six percent, more farming corporations are locking away excess cash in GICs and other investments. Before you do this, beware of the punitive tax rate. Corporate passive investment and rental income are taxable at 50.67 percent (with 30.67 percent refundable if dividends are paid out to the shareholders). […] Read more
Pay taxes on time and avoid big non-deductible interest
Most people don’t want to pay the Canada Revenue Agency more than they absolutely have to. CRA interest is a hidden charge that is often forgotten, but completely avoidable. The interest rate has been climbing, along with all other interest rates. It is now nine percent, and worse yet, CRA interest charges are not deductible […] Read more
Equipment immediate expensing to end for corporations
Do you need a large tax deduction before year-end? You may be able to immediate expense (100 percent write-off in the year of purchase) up to $1.5 million of equipment purchases. For corporations, immediate expensing ends Dec. 31, 2023, and the equipment must be available for use by Dec. 31. The Canada Revenue Agency defines […] Read more
Three main ways to rent farmland have pros and cons
There are three main ways of accessing land: cash rental agreements, crop shares, or crop shares with inputs (a joint venture). Each of these options has benefits and drawbacks.
Farmers encouraged to give AgriStability another look
AgriStability is a business risk management program that few producers understand and as a result many have left the program. It provides cheap disaster insurance based on an operation’s margins. The margin is calculated as allowable income (such as grain and cattle sales), less allowable expenses. Allowable expenses are the direct variable expenses, and include […] Read more
